In this article, we will learn how to Create a VAT only invoice in Fusion Cloud Payable. Suppose there is a Business Scenario when the Purchase Invoice has been raised but somehow the VAT has not been applied. In that case, we can raise a VAT only Invoice by following the steps:
- Create an Invoice line similar to the Orginal Invoice. Optionally put the original Invoice number in the Invoice Header Description.
- Ensure that the appropriate Tax Rate code has been applied to the line, which will generate the Tax amount missed out on the Original Invoice.
- Enter another Invoice Line with the same amount as Line 1 but with a negative sign.
- Ensure that the no Tax Rate code is applied on Line 2.
Thus the total line amount will be equal to zero and Invoice will end up with the non-zero VAT amount only.
Create a VAT only invoice in Fusion Cloud Payable – Video Demo